When?

It has been 11 months that gold began to drop. We have enough proof that gold prices have been manipulated. We also know that the longer a price is manipulated, the larger the reaction will be. The question is WHEN?

First, let's be thorough. Is it possible that the Obama regime will fix the economy, fix the fiscal mess and that Europe will return to sane fiscal management? Very unlikely. The Western world is in a deflationary spiral and there are only two cures for that: 1. more prudent governments that spend less and 2. printing more money.Europe and the US has not done either effectively.

There are important meetings this week by the FED and by the ECB. Sec Treasury Gaithner is in Europe today conferring with his counterparts. Will they actually do the printing or will they continue talking about it? The Market is quiet, waiting. Here is the graphic on the gold price which will react to decisions. The descending curve can be drawn two ways: 1. in one way (lower line) the breakout will occur shortly after 1,630; 2. the other way (upper graph) the breakout will occur above 1,700.

And Larry says? He thinks that a change in the Market (i.e. gold market) will come in the first two weeks of August. His numbers and equations call for a drop in gold price, because he does not believe that the Central banks will print untill their backs are to the wall. Here is the graph of gold.